The success or failure of a business is frequently influenced by its location. Research in Australia has consistently shown that selecting an unsuitable location ranks as one of the leading factors contributing to business closures. To optimise your business opportunities, finding a location most suitable for your company in Australia is crucial.
Though the cost of commercial property in Australia often reflects its market value and growth potential, this is not the only factor to consider for success. Depending on the nature of your business, the proximity of competitors and transportation hubs, as well as the ease of access to clients and suppliers at your business site, can be just as crucial as the price of commercial property.
In this blog, we outline the most crucial factors to contemplate while determining the ideal location for your business.
Related Read: Guide on How to Choose and Register a Company Name in Australia
Factors to Consider When Deciding the Right Location For Your Business in Australia
Legal Factors
The search for the perfect location starts with understanding the local laws and limitations applicable to the business you’re planning to set up in Australia. Government grants, zoning and permits, taxes and other legal considerations include:
- Taxes: The state and local taxes in your selected region can have a substantial impact on your budget. Consider researching the tax implications in that area before making any major decisions. The state you choose may have varying tax rates compared to others and certain types of businesses might need to file additional tax forms accordingly.
- Zoning and permits: Check the zoning and required permits of an area before buying or entering into a lease agreement. This will provide clarity on permissible and restricted business activities, as well as any limitations on renovations or additions to your building premises. You wouldn’t want to find out too late that you are not allowed to conduct your business activities or remodel the internal fit-out in your building premises after down payments were made.
Government grants <Top 7 Grants for Startups and Small Businesses in Australia>: Federal and state governments offer grants, but local councils can also administer programs that are appropriate for your company. You may be able to take advantage of these initiatives when choosing the ideal location for your business, depending on your eligibility.
Commercial Factors
In addition to the aforementioned legal aspects, you must also take into account factors that directly influence your business operations and financial performance.
- Demographics: It is essential for your business to be situated in close proximity to your target market. You need to make sure there is enough consumer base to support your business.
- Foot traffic: Your ideal location must be able to generate a high amount of foot traffic to help increase the accessibility of your business to new and existing customers. High foot traffic can translate to more customers and higher sales.
- Accessibility: Nobody wants to make long commutes to visit or try to find your business. If customers find it stressful to visit your location, they may not want to make another trip. To ensure accessibility, consider choosing a location that:
- Is in close proximity to major highways
- Conveniently located near transport hubs (subways, bus stops, taxi stands, etc.)
- Has plenty of available car parks and/or street parking
- Competition: Establishing your business in close proximity to competitors can boost foot traffic and drive consumer demand in that particular area. This is especially true for retail businesses, where having plenty of choices for shopping is convenient for prospective buyers. However, being nearby your competitors can also have adverse effects on your business. It is crucial to thoroughly consider both the positive and negative aspects relevant to your specific business.
- Nearby establishments: The amount of foot traffic near your business can positively influence your success. You can capitalise on this by offering services/products that complement their purchases.
- Opportunities for Expansion: Though not a priority at the outset, it is always better to think ahead. Should the need arise, expanding your business premises might be challenging, and relocating, particularly in Australia, can be a costly endeavour. Always opt for a location that can facilitate the expansion of your business.
Related Read: Pty Ltd vs. Branch Office: Choosing Your Australian Entity
Set Up Your Business in the Right Location With Ease
The success of your business can depend on where you locate it. The price of commercial real estate is a significant consideration, but it is not the only one. Equally important is how easily consumers and suppliers can get to your business location, as well as how close it is to rival businesses and transportation hubs. You should think about legal aspects like taxes, zoning and permissions, and government grants in order to make the best choice.
It can be daunting to choose where to establish your company in Australia, especially if you want to make the best choice possible. If you are uncertain about where to begin, do not hesitate to contact us for expert guidance in finding the ideal location for your new Australian company.
Find Your Ideal Business Location in Australia!
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